255 – Scammed By Solar

by | Oct 30, 2020 | Podcast | 0 comments

Like many Americans, my mailbox and voicemail box is cluttered by multiple sales offers to install solar on my properties.


First, let me say I love the concept of solar energy, in fact, I have solar panels and a large battery bank installed on our motor home which allows us to remain unplugged as we travel the country.


I was originally intrigued by the concept of solar on my sticks and bricks property until I learned the downside of installing solar on a stick and bricks property.


I thought that it would eliminate the chance of power outages for my tenants, but quickly learned that’s not the case.  This is because of how the systems are required to be designed when installed on a traditional home.


The system is designed to harvest solar energy from the sun and feed it to the power grid.  The power company then monitors how much power your setup supplies and pays you in the form of credits to provide them with electricity.  They then provide your home with power from the grid but only charge for what you use that exceeds what you make and send them.


I was told by all four companies I spoke with that when I sold the property, it would be worth more because it has solar installed, this is FALSE!  In speaking with several appraisers I was told that installed solar systems do not have any impact on the value of a home.


One upside is that you can earn a tax credit for installing solar (more on that in the episode)


Since it offered no benefit during a grid down situation and was grossly overpriced by the install companies, I passed on the opportunity to install solar on my sticks and bricks properties.  I did however install the solar system on my motorhome and therefore received the 30% tax credit.  In the motorhome, it is priceless since it means we don’t have to go to RV parks any longer since we can generate our own power.


Tune in to hear the rest of the pros and cons as they pertain to solar on investment properties.